AuRico Gold Initiates Drip Program

Before you go, we thought you'd like these...
Before you go close icon

Wishing to provide investors with a means of acquiring additional shares of the gold miner's common stock, AuRico Gold said its board of directors declared it would be initiating -- effective immediately -- a dividend reinvestment plan that enables shareholders to reinvest the cash dividends paid on their stock.

The Drip program would feature a maximum 5% discount to the stock's current trading price, with any commissions or administrative costs generated by the plan borne by the miner.

AuRico intends to pay an annual dividend of $0.16 per common share, but paid in quarterly installments, with the first dividend having been paid on April 18 at a rate of $0.04 per share. Additional dividends are expected to be paid as follows:

Record Date Payment Date Dividend
July 15 July 29 $0.04
Oct. 11 Oct. 29 $0.04
Jan. 14 Jan. 29 $0.04

Starting in 2014, however, the quarterly dividend will be linked to AuRico's operating cash flow, whereby it intends to pay out 20% of the OCF generated in the preceding quarter divided by the number of outstanding shares at the time the dividend is approved. Dividend payments are expected to be paid within three to four weeks following the release of AuRico's financial statements.

The $0.16-per-share annual dividend yields 3.1% based on the closing price of AuRico Gold's stock on June 10.

The article AuRico Gold Initiates Drip Program originally appeared on

Fool contributor Rich Duprey and The Motley Fool have no position in any stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading